IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>Bloomberg reports that <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a> draws takeover interest from <a href="https://www.smartkarma.com/entities/blackstone-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone (BX US)</a>, which is considering partnering with Chairman and largest shareholder Reinold Geiger.</li>
<li>Blackstone needs an attractive takeover premium due to the presence of significant disinterested shareholders (Mr. Geiger and Acatis KVG).</li>
<li>Shareholders will be wary of the latest rumour due to Mr Geiger’s aborted offer on 4 September 2023. Nevertheless, the valuation is undemanding compared to peer multiples.</li>
</ul>


Bloomberg reports that L'Occitane (973 HK) draws takeover interest from Blackstone (BX US), which is considering partnering with Chairman and largest shareholder Reinold Geiger.
Blackstone needs an attractive takeover premium due to the presence of significant disinterested shareholders (Mr. Geiger and Acatis KVG).
Shareholders will be wary of the latest rumour due to Mr Geiger’s aborted offer on 4 September 2023. Nevertheless, the valuation is undemanding compared to peer multiples.


L’Occitane (973 HK): Blackstone Pondering an Offer

Analyst

Steve

Equity Bottom-Up

<ul>
<li>L'Occitane (973 HK) announced two solid moves this week:  1) Disposing the 70% stake in Grown Alchemist;</li>
<li>And 2) granting additional call options to Sol de Janeiro CEO Heela Yang of up to 7%.</li>
<li>The stock is trading at 19x FY25 PE (fiscal year ending March), up from just 14x six months ago.</li>
</ul>


L'Occitane (973 HK) announced two solid moves this week:  1) Disposing the 70% stake in Grown Alchemist;
And 2) granting additional call options to Sol de Janeiro CEO Heela Yang of up to 7%.
The stock is trading at 19x FY25 PE (fiscal year ending March), up from just 14x six months ago.


L'Occitane (973 HK):  Two Good Moves, Though Rerating Has Been Fast And Furious

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>From 2018 onward, French beauty retailer <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a> has apparently drawn interest from the likes of Advent International and its controlling shareholder Chairman Reinold Geiger - amongst others. </li>
<li>There is substance to these "Offers" - Geiger confirmed in August 2023 he was contemplating a conditional voluntary general Offer. He holds <a href="https://di.hkex.com.hk/di/NSForm3A.aspx?fn=DA20240205E00172&amp;sa2=as&amp;sid=45406&amp;corpn=L%27Occitane+International+S.A.&amp;sd=07%2f02%2f2023&amp;ed=07%2f02%2f2024&amp;cid=0&amp;sa1=cl&amp;scsd=07%2f02%2f2023&amp;sced=07%2f02%2f2024&amp;sc=973&amp;src=MAIN&amp;lang=EN&amp;g_lang=en&amp;" target="_blank" rel="noopener">72.65%</a> of shares out according to the HKEx. </li>
<li>The latest news, with no definitive source, is that Blackstone is mulling the possibility of teaming up with Geiger on a buyout.</li>
</ul>


From 2018 onward, French beauty retailer L'Occitane (973 HK) has apparently drawn interest from the likes of Advent International and its controlling shareholder Chairman Reinold Geiger - amongst others. 
There is substance to these "Offers" - Geiger confirmed in August 2023 he was contemplating a conditional voluntary general Offer. He holds 72.65% of shares out according to the HKEx. 
The latest news, with no definitive source, is that Blackstone is mulling the possibility of teaming up with Geiger on a buyout.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a> reported FY1H24 (fiscal year ending March 31) results yesterday after market, with net profit down 45% yoy. </li>
<li>The sharp drop in earnings is mainly due to a 48% yoy increase in marketing costs, as well as increased finance costs.</li>
<li>The company maintained the FY24 outlook of 17% topline growth and an operating profit margin of 12% (FY1H24:  7.2%). </li>
</ul>



L'Occitane (973 HK) reported FY1H24 (fiscal year ending March 31) results yesterday after market, with net profit down 45% yoy. 
The sharp drop in earnings is mainly due to a 48% yoy increase in marketing costs, as well as increased finance costs.
The company maintained the FY24 outlook of 17% topline growth and an operating profit margin of 12% (FY1H24:  7.2%). 


L'Occitane (973 HK):  FY1H24 Earnings Hurt By Massive Increase In Marketing, As Expected

<ul>
<li>I tally 50 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.</li>
<li>Three new deals discussed this week: <a href="https://www.smartkarma.com/entities/fancl-corp" target="_blank" data-smartkarma-citation="entities:15862:1" rel="noopener">Fancl (4921 JP)</a>'s Tender offer, <a href="https://www.smartkarma.com/entities/a8-new-media-group-ltd" target="_blank" data-smartkarma-citation="entities:3444:1" rel="noopener">A8 New Media (800 HK)</a>'s Scheme, and <a href="https://www.smartkarma.com/entities/jeisys-medical-inc" target="_blank" data-smartkarma-citation="entities:36766:1" rel="noopener">Jeisys Medical (287410 KS)</a>'s delisting offer. Bain also approached <a href="https://www.smartkarma.com/entities/bapcor-ltd" target="_blank" data-smartkarma-citation="entities:8433:1" rel="noopener">Bapcor (BAP AU)</a>.</li>
<li>Key updates took place on: <a href="https://www.smartkarma.com/entities/sigma-healthcare-ltd" target="_blank" data-smartkarma-citation="entities:15966:1" rel="noopener">Sigma Healthcare (SIG AU)</a>, <a href="https://www.smartkarma.com/entities/alumina-ltd" target="_blank" data-smartkarma-citation="entities:939:1" rel="noopener">Alumina (AWC AU)</a>, <a href="https://www.smartkarma.com/entities/greatview-aseptic-packaging" target="_blank" data-smartkarma-citation="entities:10802:1" rel="noopener">Greatview Aseptic Packaging (468 HK)</a>, <a href="https://www.smartkarma.com/entities/helios-techno-holding-co-ltd" target="_blank" data-smartkarma-citation="entities:13934:1" rel="noopener">Helios Techno (6927 JP)</a>, and <a href="https://www.smartkarma.com/entities/tatsuta-electric-wire-cable-co-ltd" target="_blank" data-smartkarma-citation="entities:12509:1" rel="noopener">Tatsuta Electric Wire &amp; Cable (5809 JP)</a>.</li>
</ul>


I tally 50 - mostly firm, mostly Asia-Pac - transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
Three new deals discussed this week: Fancl (4921 JP)'s Tender offer, A8 New Media (800 HK)'s Scheme, and Jeisys Medical (287410 KS)'s delisting offer. Bain also approached Bapcor (BAP AU).
Key updates took place on: Sigma Healthcare (SIG AU), Alumina (AWC AU), Greatview Aseptic Packaging (468 HK), Helios Techno (6927 JP), and Tatsuta Electric Wire &amp; Cable (5809 JP).


(Mostly) Asia-Pac M&A: Fancl, Jeisys Medical, A8 New Media, Bapcor, Helios Techno,Tatsuta Electric

Hong Kong

L'Occitane International S.A. is a global, natural and organic ingredient based cosmetics and well-being products enterprise.  The Company designs, manufactures and markets a wide range of cosmetics and well-being products based on natural and organic ingredients sourced principally from or near Provence.

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L'Occitane (973 HK)

L’Occitane (973 HK): Blackstone Pondering an Offer

L’Occitane is on a trading halt pursuant to the Code on Takeovers and Mergers. Bloomberg reports that Blackstone is nearing a privatisation deal...

Arun George

L'Occitane (973 HK): Two Good Moves, Though Rerating Has Been Fast And Furious

L'Occitane (973 HK) made strategic moves by selling stake in Grown Alchemist and granting call options to Sol de Janeiro CEO.

Steve

L'Occitane (973 HK): Here We Go Again

On balance, an Offer will unfold. Expect an Offer price of at least HK$26/share. Timing is everything. This latest rumour may, again, come to...

David Blennerhassett

L'Occitane (973 HK): FY1H24 Earnings Hurt By Massive Increase In Marketing, As Expected

Share price is up 20% since the "earnings miss" and this insight. Recommend to take advantage of the current weak sentiment on such companies...

Steve

(Mostly) Asia-Pac M&A: Fancl, Jeisys Medical, A8 New Media, Bapcor, Helios Techno,Tatsuta Electric

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

L’Occitane (973 HK): Blackstone Pondering an Offer

L’Occitane is on a trading halt pursuant to the Code on Takeovers and Mergers. Bloomberg reports that Blackstone is nearing a privatisation deal...

Arun George

L'Occitane (973 HK): Two Good Moves, Though Rerating Has Been Fast And Furious

​L'Occitane (973 HK) made strategic moves by selling stake in Grown Alchemist and granting call options to Sol de Janeiro CEO.

Steve

L'Occitane (973 HK): Here We Go Again

On balance, an Offer will unfold. Expect an Offer price of at least HK$26/share. Timing is everything. This latest rumour may, again, come to...

David Blennerhassett

L'Occitane (973 HK): FY1H24 Earnings Hurt By Massive Increase In Marketing, As Expected

Share price is up 20% since the "earnings miss" and this insight. Recommend to take advantage of the current weak sentiment on such companies...

Steve

(Mostly) Asia-Pac M&A: Fancl, Jeisys Medical, A8 New Media, Bapcor, Helios Techno,Tatsuta Electric

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

L'Occitane (973 HK) made strategic moves by selling stake in Grown Alchemist and granting call options to Sol de Janeiro CEO.